Innovation Department Raises $3.7 Million to Accelerate DTC Brand Technology Platform
Innovation Department, a tech-empowered platform that creates and builds Direct To Consumer (DTC) brands, announced that it has closed $3.7 million in capital from investors including Long Light Capital, Synergis Capital, Ambridge Capital, Ryan Freedman, General Partner of Corigin Ventures and Carter Reum, Co-Founder & Managing Partner of M13 Ventures. Innovation Department streamlines the process of building DTC brands through a vertically-integrated, technology platform optimized for acquiring omnichannel customers with capital efficiency and growth velocity.
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“We have found that DTC brands that adopt the holding company model philosophy and use existing resources and institutional knowledge to build their brands are much better equipped to scale quickly and efficiently”
Innovation Department has already successfully built and scaled multiple DTC brands, including wellness and nutrition brand WellPath, which was designated as an Amazon Prime Day Partner in 2019 and has increased revenue annually by 400 percent, and soon-to-launch pet brand Finn. Through its technology platform, coupled with proprietary insights and expertise, the company has proven the effectiveness of the DTC holding company model, which enables brands to pool their resources, operational costs, and institutional knowledge to accelerate growth and achieve profitability at a faster rate. This first round of outside capital will be used to further substantiate, test and scale new methods of innovative brand building for their portfolio.
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“We have found that DTC brands that adopt the holding company model philosophy and use existing resources and institutional knowledge to build their brands are much better equipped to scale quickly and efficiently,” said Alex Song, Co-Founder and CEO of Innovation Department. “We are confident that our unique brand-building approach which maximizes proprietary learnings, capital investment and the collective expertise of our team, can provide our brands with differentiated advantages for developing sustainable businesses. With the support of our strategic investors, we are now able to accelerate the evolution of our innovative platform and maximize our growing portfolio of startup brands.”
Founded in 2015, Innovation Department has developed three brands in-house, including helping WellPath differentiate itself in the crowded wellness sector, and pet wellness brand Finn, launching in Q3. In the last six months, Innovation Department’s total revenue has doubled and headcount has increased by 30 percent.
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